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Financial Management

Direction and guidance on the financial management requirements of the department.

Changes since previous version

2023 Apr 05 - updated implementation document, Repurpose funds, to remove reference to the Investment Advisory Committee and remove the Strategic Programs reference table.

Document history

2022 Aug 26 - updated links in the implementation document, Assets-non-current assets and equipment.

2021 Jul 15 - new implementation document: Annual financial statements.

2021 Jun 21 - maintenance update to implementation document: Assets - non-current asset and equipment, Section 2.1 minor wording changes to improve readability.

2021 Feb - minor review to Implementation document : Assets Non-current assets and equipment updates to definitions & minor format changes.

2020 Jun - implementation documents: Decision tree repurpose funds and Process repurpose funds - deleted and are now incorporated into implementation document: Repurpose funds.

2020 Jun - inclusion of three new implementation documents.

Superseded documents

Budget Policy PD-2006-0354

  1. Policy statement
    1. This policy provides direction and guidance on the department's financial management requirements:
      • financial (external) reporting compliance with external financial reporting requirements and determining the appropriate accounting treatment of financial transactions entered into by the department
      • management (internal) reporting financial planning, budgeting, forecasting, and financial performance management.
    2. The application of accounting principles can be complex and requires exercising professional judgement. This policy aims to ensure consistency in determining the appropriate accounting treatment for transactions the department enters into and to achieve compliance with external financial reporting requirements.
    3. The department aims to maximise the level of funding provided for education and training services. This policy establishes a management reporting framework and provides direction and guidance for developing and managing the department's budget. This includes maintaining forward estimates in accordance with the NSW Budget process.
  2. Audience and applicability
    1. All staff, contractors and consultants engaged by the department.
  3. Context
    1. The department is required to comply with the following statutory financial reporting requirements in preparation of its annual financial statements, when applicable:
      • the Public Finance and Audit Act 1983 (PFA Act)
      • the Government Sector Finance Act 2018 (GSF Act)
      • the Government Sector Finance Regulation 2018 (GSF Regulation)
      • NSW Treasury pronouncements, including Treasurer's Directions, Policies and Guidelines, Circulars
      • Australian Accounting Standards Board (AASB) Australian accounting pronouncements, including Australian Accounting Standards (AAS) and AASB Interpretations.
    2. The requirement for the department to provide a framework for developing and managing its budget, as well as to maintain forward estimates in accordance with the NSW Budget process, including explicitly linking funding to delivery of the Premier's Priorities and State Priorities, is established by:
      • the PFA Act, GSF Act and GSF Regulation
      • the Constitution Act 1902 (Constitution Act)
      • the Education Act 1990 (Education Act)
      • the Appropriation Act and Appropriation Bill for the relevant financial year.
    3. Useful resources and related documents:
      • Finance and accounting provides guidance on planning, banking services, payables, receivables, reconciliation, asset accounting, taxation, journals and delegations
      • Finance in Schools Handbook (FISH) provides guidance on the financial management and related administrative activities of NSW public schools.
  4. Responsibilities and delegations
    1. Secretary, Department of Education
      • ultimate responsibility for ensuring compliance with financial management requirements
      • approve the department's annual financial statements.
    2. Executive
      • identify and manage financial risks
      • monitor financial performance, and make budget and investment decisions.
    3. Deputy Secretary
      • approve this policy at commencement date
      • approve subsequent significant amendments to this policy after the commencement date
      • approve rescinding this policy, if appropriate.
    4. Principals, Executive Directors, Directors and managers of business units
      • monitor compliance and implement proper internal control measures within their areas of responsibility
      • review and monitor financial allocations and provide advice on cost pressures and savings
      • ensure budget compliance so that expenditure is not committed or incurred in excess of approved budget limits, exercise due economy in the utilisation of budget allocations and ensure budget allocations are not exceeded
      • provide information on potential financial risks and changes in service delivery for evaluation as part of the budget process. This includes known and potential changes to financial relationships between the department and other organisations for evaluation as part of the budget process.
    5. EDConnect, Shared Services (Finance and Business Services)
      • advise and support all departmental staff in relation to queries and information, including implementing and interpreting this policy
      • first point of contact for all types of queries, interpretation and recommendations for improving this policy.
    6. Enterprise Planning, Budgeting and Reporting branch, Finance Directorate
      • monitor changes to management reporting requirements and update this policy, when required
      • prepare comprehensive submissions to NSW Treasury in order to optimise the level of funding provided in the State Budget for education and training services
      • develop specific budget strategies that will achieve Government and departmental outcomes within the financial parameters established by the State Budget
      • advise and support schools and business units on funding available for the delivery of education and training services each financial year including preparation of guidelines for the management of financial allocations.
    7. Policies and Procedures Oversight, Financial Controlling, Finance Directorate
      • monitor changes to financial reporting requirements and update this policy, when required
      • advise and support EDConnect, Shared Services for implementing this policy.
  5. Monitoring and review
    1. The Chief Financial Officer monitors the implementation of this policy, regularly reviews its contents to ensure relevance and accuracy, and updates it as needed.
  6. Contact
    Finance Manager, Financial Controlling, Finance Directorate
    financialcontrolling.ppo@det.nsw.edu.au
    02 7814 1036
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